4. A contractor must choose between two jobs: Job A and Job B.

• For Job A there is a 75% chance of earning a profit of $12,000 and a 25% chance

of incurring a loss of $3,000.

• For Job B there is a 50% chance or earning a profit of $18,000 and a 50% chance

of incurring a loss of $4,000.

a )Which job should the contractor choose to maximize his expected profit?

b) Which job has less standard error?